Modi Govt loses 3 top economists in 3 years
It is a telling commentary on the BJP government. In a span of three years, three US-educated Indian economists have left after serving the country in top positions, not an enviable record of the Modi Government, by any standards.
After the premature exit of Arvind Panagariya, who was handpicked by PM Modi to run the Niti Aayog, comes the resignation of Chief Economic Adviser Arvind Subramanian who is cutting short the extension he received last September, on account of “pressing family commitments”.
While Subramanian’s tenure was marked by the revamp of the Economic Surveys and the ideas he threw up for public deliberation, many feel that he was not kept in the ambit when some important economic decisions like demonetisation were taken.
Also, for most part of his tenure it was a difficult walk on eggshells as Arvind had to make sure that he does not step on BJP and RSS sensitivities, especially in his public interface. In this context, his anecdotal evidence in Financial Times was a dead give-away. “I was asked for my views on the beef ban in Mumbai and I said jokingly that if I speak on this I’ll probably lose my job — and that went on the front page of The Indian Express. In that case I was told to be a bit more careful,” he told the FT.
But these saffron sensitivities did not deter him from speaking, in various public lectures, on the imprint that social fault lines and communalisation leave on economic development.
The pressures had perhaps mounted with Rajya Sabha MP Subramanian Swamy launching a public tirade for his removal as CEA in mid-2016 on the grounds that prior to his appointment, he had made uncharitable comments about PM Modi and had challenged in the US Congress India’s stance on trade barriers.
It will be recalled that almost a similar whisper campaign was conducted against RBI Governor Raghuram Rajan as well, who was not offered a second tenure at the central bank.
The Congress response to the Arvind Subramanain’s exit was predictable. It said the resignation had not come as a surprise as all 'financial experts' in the Modi government were fed up of its 'colossal economic mismanagement, tepid economic reforms and financial anarchy."
But boss Arun Jaitley was more than magnanimous in hailing Subramanian’s contribution. "He conceptualised JAM (Jan Dhan, Aadhar and Mobile) as a data base for availing public benefits. He contributed to the debate on federalism by conceptualising that Indian federalism has not merely to be cooperative but also competitive. He came out with newer ideas, policy reforms in the sectors of clothing, fertilisers, kerosene, power and pulses," Jaitley said.
"Personally I will miss his dynamism, energy, intellectual ability and ideas. He would walk into my room - at times several times a day, addressing me as “Minister” to give either the good news or otherwise. Needless to say his departure will be missed by me. But I know that his heart is very much here. I am sure he will keep sending advice and analysis wherever he is," Jaitley wrote in a ‘Thank You’ note.
On assumption of office, the Modi government was able to attract the best of the available talent among economists, mostly of IMF variety. But somehow it has not been able to retain it.